With $40M In Series B round, Jiko offers companies T-bill parking
Starting out as a consumer-based mobile bank, Jiko, the fintech startup, is now foraying into corporate money storage.
In 2020, Jiko was the first fintech to procure a nationally regulated US bank. The company was also unique in using customer deposits to purchase short-term Treasury bills (T-bills). T-bills are short-term debt obligations supported by the US Treasury Department with a maturity of one year or less.
Last November, Jiko revealed that it received inquiries from other fintechs interested in leveraging its technology. Jiko’s co-founder and CEO, Stephane Lintner said that the sudden focus on T-bills encouraged the startup to rethink its strategy to capitalize on the rising demand.
A Series B funding round of $40 million has now been raised to help the startup meet demand. According to Jiko, its product, Jiko Money Storage, will provide companies across multiple industrial sectors with “low-cost access” to T-bills.
According to Lintner, T-bills offer a “highly competitive” potential yield to companies, especially startups with large amounts of cash. With its bank charter and experience as a broker-dealer, Jiko also hopes to guide its customers with safer banking activities.
It is clear that a number of investors are willing to bet on Jiko’s lofty claims. The Series B financing led by Red River West has raised a total sum of $87.7 million since 2016.
Jiko also plans to allow companies to store and move money round-the-clock on T-bills with “immediate liquidity”. Lintner believes this option will appeal more to investors in the current macroeconomic climate.
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